Hyundai Motor Company is refocusing its electric vehicle (EV) strategy to prioritize the North American market, while scaling back its plans in Europe. 

On September 1, Hyundai’s Investor Relations (IR) team announced that the company will maintain its 2030 EV sales goal of 2 million units but will adjust its regional targets. The North American target has been raised to 690,000 units, a 4.5% increase from the previous year, whereas the European target has been reduced by 8.4% to 467,000 units.

This strategic pivot is fueled by the higher growth potential of eco-friendly vehicles in North America, aligning with Hyundai's goal to become a leading global EV player. In contrast, Europe is experiencing a temporary dip in EV demand, often referred to as the "EV chasm," making the market less attractive for aggressive expansion.

In the first half of this year, Hyundai’s EV sales in the U.S. reached 32,491 units, a 32.1% increase from the same period last year, outpacing the growth rate of hybrids, which rose by 20.7%. Eco-friendly vehicles accounted for 21% of Hyundai’s total U.S. sales in the first half, setting a new record.

Meanwhile, Hyundai’s market share in Europe’s EV segment has been declining. The proportion of EV sales in the overall European market peaked at 21% in August last year but has remained around 10% over the past year. Hyundai’s flagship model, the Ioniq 5, saw a 36.9% drop in sales in Europe, with 8,157 units sold in the first half of this year.

As a result, Hyundai has lowered its EV sales target for Europe this year to 300,000 units, down from last year’s target. The company has also adjusted its 2027 target to 841,000 units, lower than the 940,000 units previously set for 2026, reflecting a more cautious outlook amid the ongoing EV market challenges in Europe.

To achieve its 2030 sales target of 2 million units, Hyundai is concentrating on expanding its presence in North America. The Hyundai Motor Group Metaplant America (HMGMA), currently under construction in Georgia, USA, will be pivotal in this effort. Once operational in the second half of the year, HMGMA will begin producing the Ioniq 5 in October, with the Ioniq 9 and other models to follow in 2025, ramping up to an annual capacity of 500,000 units.

Hyundai’s strategies outlined at the CEO Investor Day, including the expansion of hybrid models and the introduction of Extended Range Electric Vehicles (EREVs), will primarily focus on North America, supporting the company’s broader electrification goals.

Hyundai Motor’s IR team reiterated the company’s commitment to its 2030 EV sales target and its ambition to be a top global EV player. The emphasis on North America, supported by the HMGMA facility, is expected to be a key driver in reaching these objectives.